ASTEROID MINING & ITS LEGAL IMPLICATIONS Neil Modi & Devanshu Ganatra Presentation ID- IAC- 16.E7.IP.23.x32357 REASONS TO MINE ASTEROIDS With the rapid progress made in technology, humans are taking huge steps in space today. There is huge potential in space, and particularly in asteroid mining. ENERGY CRISIS RARE EARTH METALS • Non-renewable fossil fuels like coal, oil currently account for 81% of • Many of the metals widely used in almost all industrial products the world’s primary energy. were always limited and are now in SHORT SUPPLY leading to skyrocketing manufacturing costs. • EARLIER, renewable energy could not compete with non-renewable sources because it relied on metals in short supply. Resources found • These include Platinum Group Metals (PMGS) and others like on asteroids would solve this problem completely. gold, cobalt, iron, molybdenum etc.

Image Credit-The U.S. Energy Image Credit- FuelSpace.org- ‘How Asteroids Can Information Administration Save Mankind’ PROJECTED SCARCITY OF RESOURCES ON EARTH

Image Credit-Shackleton Energy Company Image Credit- Chris Clugston’s ‘An Oil Drum- An Analysis’ (2010) THE NEED FOR WATER

1. SUPPORT SYSTEM FOR ASTRONAUTS- Since the main constituents of water HYDRATION AND OXYGEN are hydrogen and oxygen, it is a source of oxygen for life support. TO ASTRONAUTS 2. PROTECTION FROM RADIATION- Water absorbs and blocks infrared radiation, which means that by storing heat it helps to maintain temperature. 3. ROCKET FUEL- Rocket propellant is hydrogen and oxygen based, with a large percentage of the weight of a spacecraft taken up by fuel. 4. SPACE EXPLORATION- A GAS STATION IN SPACE KEY TO SPACE BLOCKS EXPLORATION WATER RADIATION  Today billions of dollars are spent in rocket fuel to sustain space explorations.  IF, water is taken from asteroids and broken down into fuel, rockets will become lighter and missions cheaper.  Asteroids will serve as ORBITAL REFUELLING DEPOTS which will allow us to make journeys that have always been out of our reach. ROCKET FUEL THE RELATIONSHIP SUMMARISED:

HUGE COSTOF ORBITAL SUBSTITUTED ROCKET FUEL BY REFUELLING LIGHTER CHEAPER ROCKETS MISSIONS Earth vs. Space- Accessible Water

• The Volume of the Earth’s accessible water compared to the volume of the world

Image Credit: USGS Water Science School Water as the future of Space Exploration

Source: Planetary Resources, “ The Trillion Dollar Market, Fuel in Space from Asteroids”. HOW ASTEROID MINING CAN BE DONE EXISTING INTERNATIONAL & DOMESTIC LEGISLATION INTERNATIONAL: Major Private Companies engaged in 1. The Outer Space Treaty-1967 Asteroid Mining: 2. The Moon Treaty-1969

NATIONAL/DOMESTIC LEGISLATION USD 1 Billion- Cost of bringing 1. Russia- The Law of Russian 2oz of an Planetary Deep Space Federation on Space Activities Asteroid, the Resources Industries (1979) weight of a tennis ball back 2. USA – Space Act 2015 to earth 3. Luxembourg- Space Resources Law (Pending-2017) Shakleton Moon Express Energy Company THE NEED FOR A NEW LEGAL REGIME

• The Outer Space Treaty (1967) lays down the principles that apply to all activities carried out in space. REASONS FOR ESTABLISHMENT FOR A NEW LEGAL • Province of Mankind Principle--Article 1 states that the exploration of celestial bodies shall be for the benefit of all countries. FRAMEWORK • Non-Appropriation Principle- Article 2 states that celestial bodies shall not be subject to national appropriation by occupation or any other • States No Longer Sole Participants In Space Activities--Earlier, most space means. activities were undertaken by State governments. This is not the case QUESTIONS WE FACE TODAY anymore. • Regulation Of Private Parties --With rapid technological progress and the entrance of private companies who wish to exploit the resources found on Can the UN Will countries asteroids, there is a need to regulate their activities in an orderly manner to provide a enact legislations prevent conflict. successful way to which is parallel Regulation Of Joint Ventures For establishment of the framework for joint discuss space to the law • mining ? adopted in USA? ventures between Governments and private entities • Dispute Resolution- For settlement of disputes between States and Private entities and between private entities inter se. THE FOLLOWING QUESTIONS CAN ONLY BE ANSWERED THROUGH PLANNING AND REGULATION: Drawbacks of the Will countries 1. What will the sale price of mined resources be? What is the extent to OUTER SPACE ratify the Moon which profits will be permitted? TREATY Agreement ? 2. The effect of asteroid mining on the respective State and world economy 3. The aim of the Government in engaging in asteroid mining--– For PROFIT or for STATE WELFARE? THE INTERNATIONAL SPACE BODY (‘ISB’) STEP 1- INTERNATIONAL COURT OF JUSTICE-- First, the ICJ must be asked to determine what legal framework, IF ANY, will apply to SPACE RESOURCE UTILIZATION INTERNATIONAL SPACE STEP 2- Proposal- Formation of a new international body, (‘ISB’) which will have a status of a specialized BODY Agency under the United Nations. The ISB will consist of a Panel of Experts appointed by All Member States. All nation States members Objective- Formulation of rules by the Panel of Experts that apply to the entire range of Asteroid Mining activities. Issue and PROCESS FOR GRANTING A TENDER FOR MINING EXPERTS Revocatio STEP 1- APPLICATION STAGE n of Appointed by ISB Mining State Governments and Private Parties, either members Approvin Licenses in partnership or separately apply via tenders Apportio g Target STEP 2- GRANT OF LICENSES n Liability Asteroid After due consideration, the Expert Panel will grant ISB a mining license to the most capable enterprise STEP 3- FACTORS TO BE CONSIDERED BY PANEL Terms of FUNCTIONS PANEL OF Mining- The Expert Panel is duty-bound to consider the Duration, Dispute EXPERTS location, strength of the tender based on the applicant’s Settlement rights of mining plan, financial resources and track record. licensee, 3rd parties Determining property rights of Licensee FUNCTIONS OF THE ISB STRUCTURE OF THE ISB DISPUTE SETTLEMENT STEP 1- Dispute Resolution by the ISB Expert Panel that constitutes ISB decides disputes between parties. The ISB DECISION IS BINDING.

STEP 2- The Multi-Door Courthouse However, in the interests of justice and fair play, an appeal to a duly authorized adjudicatory body will be permitted. Departing from the traditional system, this appeal will lie to a MULTI-DOOR COURTHOUSE.

WHAT A MULTI DOOR COURTHOUSE IS: • A courthouse where various dispute resolution options exist • The dispute resolution options include mediation, arbitration, conciliation, case evaluation and finally adjudication • Parties are referred to different dispute resolution options to select an option that suits them best. • GOAL OF THE SYSTEM- Streamlining the dispute resolution An Illustration of a Working Multi-Door Courthouse process and resolving disputes beyond the standard option of litigation